As calls to combat work stress grow, Indian banks roll out policies to pamper employees

Private banks saw significant attrition in the financial year 2022-23, but to the relief of many, the attrition fell in the financial year 2024. For public sector banks, attrition remains low, considering how employees perceive working in state-owned institutions. Over the past few years, however, even these employees have begun expressing their concerns about workplace stress on social media.

So when a recent video of Union Bank of India executive director Nitesh Ranjan saying branches should be closed after 6:30 pm went viral, it created a stir among other banks.

According to people familiar with the matter, the video comes from an internal meeting between management and employees on the day the bank released its second-quarter earnings last week.

“I would also like to add a little bit about work-life balance, which is something I’ve also encountered… (say) at ten o’clock, when I’m about to go to bed, I get a WhatsApp (message) reminding someone Something that has not been achieved yet. Can we decide that from 8 pm to 9 am we will not have any WhatsApp communication on official channels?” Ranjan said in the video.

Ranjan said employees should not send messages through official channels between 8pm and 9am unless there is an emergency. “Even in this case, please contact the individual, not the (official) group,” he said in the video.

Union Bank of India did not immediately respond to an emailed query.

In a digitally connected world, discussions around workplace stress frequently arise across industries, particularly in startups, technology and consulting, where a “culture of hustle” is a key and well-known factor in company success. While this takes an invisible, delayed toll on employees, the consequences can sometimes be tragic.

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Not everyone is convinced the shutdown notices make sense. As NBFCs penetrate further into smaller towns, their sales teams will have to push aggressively to achieve targets, says a founder of an NBFC.

“Work cannot be stopped for a period of time. Jewelers will not close during Diwali. Similarly, NBFCs will have to extend working hours during certain times of the year,” said the founder, who did not wish to be named. “”

private pressure

Private banks have also been trying to curb long working hours. Employee attrition rates at lending institutions rose sharply in FY23 as demand surged for younger employees with digital skills in sales and marketing across the insurance, retail and fintech sectors.

Mint reported in November that private banks planned to hire at least 50,000 entry-level positions over the next year to combat high attrition rates in the sector.

“After two years of the pandemic, we have come up with a policy called ‘7Up’ to monitor the working hours of branch employees,” said Rajkamal Vempati, president, human resources, Axis Bank. The bank’s employee attrition rate in FY24 dropped to 28.8% compared with 34.8% last year.

“…We are checking whether employees regularly use computers after get off work ends at 7 p.m. or if they often use computers when supervisors are having off-duty conversations,” Vempati said, adding that the bank’s 7Up efforts aim to ensure employees are using computers at 7 p.m. Get your work done before you click and won’t be held up by other reviews or conversations.

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HDFC Bank’s employee assistance program, India’s largest private lender, provides “confidential and professional support” to employees facing personal or work-related challenges.

According to its annual report for FY24, HDFC Bank conducts wellness webinars to prioritize employee well-being, promote work-life balance and build a positive work culture.

In 2023, HDFC Bank suspended an executive who yelled at subordinates during an undated group video call over alleged failure to meet sales targets. The suspension sparked debate about toxic behavior in the workplace, mainly related to the stress of sales jobs, Mint reported in June 2023.

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The higher the salary, the higher the requirements

Experts say private banks are working harder than public sector banks due to higher targets.

“This is especially true for sales jobs, where bankers have to work beyond their allotted hours if targets are not met,” said Veinu Nehru, managing partner at headhunting firm Fynehand Consultants.

Nehru said wages in financial services companies are typically higher than in other industries at the same level, so operating costs are also higher.

“In this case,” Nehru said, “agencies want to see employees become more productive.”

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